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February 27, 2025
Question

Rental property HVAC replacement loan deduction

  • February 27, 2025
  • 1 reply
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I installed a new HVAC and Water heater in 2022, but paid for them with a 36 month loan (no interest). I made twelve payments in 2024. Does paying for it with a loan allow me to deduct it differently than if I would have pay for the replacements with cash in 2022?

    1 reply

    February 27, 2025

    No, because it is a depreciable asset, the payment method does not change how it is reported- it would have been reported in 2022 and depreciated or expensed accordingly).  If you had paid any interest, that is a deductible expense in the year paid.